Vince Cable has no place as Business Secretary in a Conservative-led
administration.

No one could accuse Vince Cable, the Business Secretary, of hypocrisy or dishonesty, so often the abiding sins of politicians. He fearlessly says what he believes, and it is understandable that he might want to present a distinctive message, as the Liberal Democrats gather for their spring conference. The trouble is that his beliefs are often at variance with the convictions of Conservatives – that encouraging private enterprise, entrepreneurs and wealth creation is the best way to reduce unemployment and to rebuild Britain’s economy. As he is a leading member of the Cabinet in a Conservative-led Coalition, this is a problem.

Mr Cable does not have an affinity with the owners of small businesses, who are the dynamo of the economy. He has never been one of their number: his only business experience is as an economist for Shell, a multinational conglomerate that does not face the daily threat, so familiar to those who run a small enterprise, of going bust.

The Business Secretary is a dedicated advocate of state intervention. Last week, for example, he argued that it was “ridiculous” to maintain that businesses are overburdened by regulation. He dismissed Tories who call for more deregulation as “backward-looking” and “totally out of touch with the real demands of business”. And he rejected the suggestion, made in the Beecroft report, that small businesses would grow faster if those with fewer than 10 employees were able to dismiss workers without compensation. But there is no doubt, at least among those who run small firms, that such a measure would indeed help growth and reduce unemployment.

Mr Cable would also like to tax people more highly. He is the presiding spirit behind the idea of a “mansion tax” on properties worth more than £2 million. Few Conservatives support that idea, since it would have the effect of penalising success, as well as forcing many retired people from their homes. His enthusiasm for big government is equally disturbing. He clearly believes that the way out of Britain’s economic problems is more regulation and spending, not less. That sets him against most Conservatives, and quite a few economists, who have noticed that government meddling very rarely produces the results intended, and usually ends up hindering, rather than fostering, economic growth.

To repeat: we respect Mr Cable’s sincerity. But we wonder what he is doing as Business Secretary in a Conservative-led administration.